What you need to know before markets open

Stock futures: What you need to know before markets open

Toronto’s main stock index looked set to open higher on Wednesday as stronger-than-expected Canadian housing data gave investors a reason to be optimistic after shares dropped to their lowest point of the year in the previous session.

FACTORS TO WATCH

Canadian equity futures: pointed to a higher open.

U.S. stock index futures bounced back after five days of losses on the S&P 500 that brought the benchmark index down more than 4%.

European shares extended their advance in late morning trade as bargain hunters moved in after steep losses in the previous session, and with some taking a more positive view of the latest Italian debt auction.

Oil edged higher to around US$120 a barrel, after falling to its lowest in almost two months, supported by increased investor appetite for riskier assets that also led to gains in equities and the euro.

Gold steadied, following four straight days of rallies, as the intensifying euro zone debt crisis threatened to undermine the euro and offset any potential safe-haven demand for the metal.

Copper steadied from 4% losses the prior session, holding near the $8,000 mark as twin concerns of slowing U.S. and Chinese growth curbed demand expectations for the metal, but consumer buying cushioned losses.

Timmins Gold Corp. TMM.TO: The miner’s first-quarter production rose 17% and the company said it expects output to rise in the second quarter as well.

PetroBakken Energy Ltd PBN.TO: The oil firm reported higher average production for the first quarter and reiterated its capital budget for this year at $875 million.

Viterra VT.TO: Australia’s competition regulator, ACCC has halted a proposal by the grain handler to auction port capacity after similar auctions in other parts of the country have exposed problems allocating capacity despite a bumper harvest.

WiLAN Inc. WIN.TO: The U.S. Patent and Trademark Office has confirmed the validity of the company’s patent for V-chip technology, which enables objectionable television content to be blocked, the company said on Tuesday.

ANALYST RECOMMENDATIONS

Following is a summary of research actions on Canadian companies reported by Reuters.

U.S. stock futures pointed to a higher open for equities on Wall Street on Wednesday, with futures for the S&P 500, the Dow Jones and the Nasdaq 100 rising 0.1 to 0.3%.

The rise would be a turnaround from Tuesday’s more than 1.5% slide, the fifth day of losses running and the S&P 500’s worst performance since early December.

Europe’s main markets stabilised after an initial fall on Wednesday, but remained shaky. The Nikkei fell 0.8% overnight.

The U.S. Mortgage Bankers Association’s index of mortgage application activity is released for the week ended April 6 at 1100 GMT. In the previous week, the index read 695.7 and the refinancing index was 3,576.8.

At 1230 GMT, the Labor Department releases import-export prices for March. Economists forecast a 0.8% rise in import prices and a 0.4% increase in exports prices. In February, both import and export prices were up 0.4%.

The Federal Reserve releases the Beige Book of regional economic conditions at 1800 GMT.

Aluminum producer Alcoa Inc surprised Wall Street with a first-quarter profit after a loss in the fourth quarter of 2011 as global markets improved, especially in the aerospace and automobile sectors.

Reebok International Ltd agreed to settle a lawsuit by rival Nike Inc, and will stop selling New York Jets football apparel with the name of the team’s popular new quarterback, Tim Tebow.

The Treasury Department issues its monthly budget for March at 1800 GMT. Economists forecast a $196.0 billion deficit, compared with a February budget deficit of $232.0 billion.

The Dow Jones industrial average lost 213.66 points, or 1.65%, to 12,715.93 at the close on Tuesday. The Standard & Poor’s 500 Index dropped 23.61 points, or 1.71%, to 1,358.59. The Nasdaq Composite Index tumbled 55.86 points, or 1.83%, to 2,991.22.

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